In case you did not know, giving someone a cheque knowing it will bounce is a criminal offence. A cheque bounces when the bank refuses to pay out the cheque because there is an error on the cheque, it has expired (an older date), or there is not enough money on the account.
If you have done one of these things with a cheque you have given someone, here is what you can do to avoid prison for a bounced cheque.
1. First, always make sure the information you write on the cheque is correct (names, amount, and dates – and NO CROSSINGS).
2. Tell whoever is taking the cheque to “cash it in time” to avoid the issues of expiring cheques (stale dates).
3. If you have more than one account with the bank, use a linked account so that if one account does not have enough money, then money from the other account can be used to cover.
4. If you can, add an overdraft protection to your account. (a loan automatically given by the bank that allows a customer to pay for bills and other expenses when the account reaches zero). This way you cannot be caught off guard.
5. Ask the bank to inform you if your funds are low so you can get alternatives and options.
Source: BarefootLawyers
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